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Hi-Tech Pharmacal (HITK)
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HITK » Topics » 12. PRODUCT DIVESTITURE:

This excerpt taken from the HITK 10-Q filed Mar 12, 2009.

12. PRODUCT DIVESTITURE:

On July 11, 2008, the Company sold the related rights to Brometane, a cough and cold product, for $3,500,000, of which $1,000,000 was paid at closing, and $2,500,000 is due in installment payments over a period of nine months. The Company received payments of $500,000 on October 30, 2008 and January 30, 2009. The receivable relating to the sale was $1,500,000 as of January 31, 2009. The Company will also receive royalties on net sales of the product through December 2010. The Company recognized a gain of $3,500,000 on this transaction in the first quarter of fiscal 2009. The gain is included in Interest income and other on the Condensed Statement of Operations.

This excerpt taken from the HITK 10-Q filed Dec 10, 2008.

12. PRODUCT DIVESTITURE:

On July 11, 2008, the Company sold the related rights to Brometane, a cough and cold product, for $3,500,000, of which $1,000,000 was paid at closing, and $2,500,000 is due in installment payments over a period of nine months. The Company received a payment of $500,000 on October 30, 2008. The receivable relating to the sale was $2,000,000 as of October 31, 2008. The Company will also receive royalties on net sales of the product through December 2010. The Company recognized a gain of $3,500,000 on this transaction in the first quarter of fiscal 2009. The gain is included in Interest income and other on the Condensed Statement of Operations.

This excerpt taken from the HITK 10-Q filed Sep 9, 2008.

12. PRODUCT DIVESTITURE

On July 11, 2008, the Company sold the related rights to Brometane, a cough and cold product, for $3,500,000, of which $1,000,000 was paid at closing, and $2,500,000 is due in installment payments over a period of nine months. The Company will also receive royalties on net sales of the product through December 2010. The Company anticipates that the gross profit lost by the sale of the product rights will be offset predominantly by the royalties earned through December 2010. The Company recognized a gain of $3,500,000 on this transaction in the first quarter of fiscal 2009. The gain is included in interest income and other.

EXCERPTS ON THIS PAGE:

10-Q
Mar 12, 2009
10-Q
Dec 10, 2008
10-Q
Sep 9, 2008

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